Toyota Motor Corporation TM has significantly reduced its electric vehicle (EV) production target for 2026 by 30% due to slower global EV adoption, per Nikkei. It now plans to produce one million EVs in 2026, a sharp reduction from earlier projections. For 2025, Toyota's new EV production goal is 400,000 units.
Despite the adjustments, the automaker still aims to produce 1.5 million EVs annually by 2026 and 3.5 million by 2030. However, these figures are benchmarks rather than strict targets for shareholders. Achieving one million units per year is an ambitious goal for Toyota, which has historically focused on hybrid vehicles and sold only around 104,000 EVs last year. Currently, EVs make up about 1% of Toyota’s global sales.
Per Nikkei, Toyota has informed its suppliers about the decision to reduce EV production. This move makes TM the latest traditional automaker to scale back its EV commitments in light of slowingglobal marketgrowth.
Volvo recently abandoned its plan to go 100% electric by 2030 due to lower customer demand. It now targets 90% to 100% of global sales to be electrified cars, comprising both fully electric and plug-in hybrid models.
The slowdown in EV demand has been noticeable over the past year, leaving automakers in the United States, Germany and France grappling with excess EV production capacity. The car manufacturers in the United States, such as Ford and General Motors, have delayed or canceled new electric models as demand has not risen as quickly as anticipated. Legacy automakers are now leaning more toward hybrids while reassessing their EV ambitions.
Zacks Rank & Key Picks
TM currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Dorman Products, Inc. DORM, Blue Bird Corporation BLBD and Douglas Dynamics, Inc. PLOW, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.71% and 35.46%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.58% and 215.89%, respectively. EPS estimates for 2024 and 2025 have improved 65 cents and 80 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2024 earnings suggests year-over-year growth of 60.4%. EPS estimates for 2024 have improved 15 cents in the past 60 days.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.7% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Toyota Motor Corporation (TM) : Free Stock Analysis Report
Douglas Dynamics, Inc. (PLOW) : Free Stock Analysis Report
Dorman Products, Inc. (DORM) : Free Stock Analysis Report
Blue Bird Corporation (BLBD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
